The India wine industry has extended significantly over the years. Indians, comparative to other Western countries, barely consume wine; they prefer to have liquor which has a higher percentage of alcohol. But changing habits of Indians in drinking have, among other things, changed fortunes of the wine industry in India. The prospect of wine consumption in the country is very positive and expected to be high in the next few years. In India, much of the wine is made in the unorganized sector. The growth in organized market was much higher than that of unorganized market which in turn increased its market share. Organized market consists of retail stores, standalone stores, pubs and hotels that serve branded wines.

According to “India Wine Market Outlook, 2021”, India’s wine market was growing with a CAGR of 16.29% over a period of four years. Favorable and promotional government policies, higher disposable incomes and growth in foreign tourists are some of the reasons for such growth. Global travel and experience of other countries where drinking wine is a part of the lifestyle are also helping to drive the sales of wine in India. Some popular wines in the country are Reveilo, La Reserve, Sante, Sula Red, Ivy Shiraz, Nine Hills, Riviera Blanc, and Chantilli and Marquise de Pompadour. Sales are largely of domestic wines, as imported wines suffer from high retail prices due to import tariffs and consumer unfamiliarity. Though the number of Indian wine makers is on the rise, one out of four wine bottles consumed in India is still imported. International wine traders are increasingly eyeing India as an explosive high-value market.

Red wine is the favorite among Indian wine consumers and accounts for majority of wine sales. Red and White, both are traditional wine in India which will continue to grow in coming years. Whereas sparkling wine and rose wine are comparatively new categories in the country which are expected to catch the market fast. Sparkling wines has the most promising future with many players entering this category and active promotions in five-star and mid-tier hotels. Sula Vineyards dominate the India wine market with other prominent players like Grover Vineyards and Chateau Indage. Majority of India’s wine regions are concentrated in the south-western part of the country, primarily in the state of Maharashtra and Karnataka. Among regions, western India has the highest wine sales, followed by north and south. Domestically, 80% of wine consumption is confined to major cities like Mumbai, Delhi, Bangalore and Goa. Moreover sales from retail dominate the market as compared to institutional sales.